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Lenow's Drug Sto s and Hall's...

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Accounting

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Lenow's Drug Sto s and Hall's Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow and Hall are presented here. Lenow Hall Debt @ 10% Common stock, $10 par Total Common shares $290,000 Debt @ 10% $ 580,000 290,000 $ 870,000 29,000 580,000 Common stock, $10 par $870,000 Total 58,000 Common shares a. Complete the following table given earnings before interest and taxes of $33,000, $87,000, and $88,000. Assume the tax rate is 30 percent. (Negative amounts should be indicated by parentheses or a minus sign. Round your answers to 2 decimal places.) What is the relationship between the EPS of the two firms? EBIT Total assets | EBIT/TA | % | 1% Lenow EPS | Hall EPS $. 33,000|$ 87000of Lenow's EPS

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